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Bermuda to create new class of banks to encourage fintech

03 July 2018

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The Government of Bermuda is to amend the Banking Act to create a new class of bank specifically to cater to local fintech and blockchain companies.

The British island territory is bidding to put its name on the map as an outlier destination for fintech innovation, having recently passed an ICO Bill and Digital Asset Business Act to attract companies in the blockchain and virtual currency space.

The upcoming amendment to the Banking Act follows terse consultations with local banks, who have been unwilling to provide banking services to the new class of companies converging on the island, citing regulatory barriers and an aversion to risk.

Introducing the Bill in Parliament, Bermuda premier and minister of finance, David Burt, says the the reticence of banks "cannot be allowed to frustrate the delivery on our promise of economic growth and success for Bermudians"

“The fintech industry’s success globally depends on the ability of the businesses operating in this space to enjoy the necessary banking services," he says. "In other jurisdictions, banking has been the greatest challenge and for us in Bermuda, it is equally so and therefore it must be resolved.”